The Bitcoin Price Continues to Rise
In September, the price of Bitcoin experienced a bullish trend, with a nearly 5% increase for the month. This positive momentum has carried over into October, as the price continues to rise.
Bitcoin Price Increase Signals Bullish Week
Technical analysis of the weekly timeframe reveals that the BTC price has been steadily increasing since September 11th. The recent surge confirmed the $25,300 horizontal area as a strong support level. Last week, the price accelerated even further, resulting in the formation of a bullish engulfing candlestick pattern.
A bullish engulfing candlestick is formed when the entire previous period’s losses are erased, indicating a positive sign for future trends. However, it’s important to note that Bitcoin has not yet recovered from the losses incurred on August 17th, which created a bearish engulfing candlestick.
Positive Signs for a Bullish Trend
The weekly RSI (Relative Strength Index) is currently bullish, indicating positive momentum in the market. A reading above 50 is considered bullish, and the RSI is both above 50 and increasing. This suggests that the previous drop below 50 was only a temporary deviation and is another sign associated with bullish trends.
Daily Timeframe Analysis Supports Bullish Outlook
Analysis of the daily timeframe also points towards a bullish trend for Bitcoin. The price recently broke out from a descending resistance trendline, suggesting that the previous correction is complete. Currently, BTC is trading within the 0.5 and 0.618 Fib retracement resistance region at $28,350 to $29,150.
If the price manages to clear this resistance region, it could potentially increase by another 10% to reach the yearly high near $31,450.
Potential Downside Risk
While the outlook for Bitcoin remains bullish, there is a possibility of a 7% decline if the price is rejected from the 0.5-0 and 618 area. In such a scenario, the price could fall to the descending resistance line at $26,500.
Hot Take: Bitcoin Price Continues to Rise with Bullish Momentum
The price of Bitcoin has shown consistent growth in recent weeks, with September closing on a positive note and October bringing further increases. Technical analysis supports a bullish trend, with both weekly and daily timeframes indicating positive momentum. However, it’s important to monitor potential downside risks, as a rejection from key resistance levels could lead to a temporary setback. Overall, the current market conditions suggest that Bitcoin’s price will continue to rise in the near future.
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